CAs could be punished for helping clients in money laundering

The government has moved to punish chartered accountants if they help clients hide ill-gotten wealth through opaque bank transactions, or money laundering, two top officials said on Tuesday.The proposal to tweak the Prevention of Money Laundering Act (PMLA) came from the revenue department on the instruction of the Prime Minister’s Office (PMO), one of the officials from the finance ministry said.

The second source is from the PMO. Both officials refused to be identified because of the sensitivity of the matter.The PMLA stipulates up to seven years in jail and the confiscation of property of those involved in money laundering but that doesn’t include chartered accountants. The proposed amendment doesn’t make it clear what the punishment would be for CAs.